UPDATE 4-Chicago teachers extend strike, mayor seeks injunction

September 16, 2012|Reuters

The agreement calls for a 3 percent pay raise for teachersthis year and 2 percent in each of the next two years. If theagreement is extended for an optional fourth year, teachers geta 3 percent increase. The increases will result in an average17.6 increase over four years, the district said.

The deal could worsen the Chicago Public Schools financialcrisis. Emanuel said the contract will cost $295 million overfour years, or $74 million per year.

Debt rating agencies had previously warned that the newagreement with teachers could bust the school district budgetand lead to a downgrade of its credit rating.

The district has drained all its financial reserves to coveran expected budget deficit over the next year and has levied themaximum property tax allowed by law.

Lewis said teachers also fear that when the strike ends,Emanuel will soon announce the closing of scores of schools tosave money to pay for the new contract with teachers and to makeroom for opening more charter schools.

Teachers won a concession from Emanuel that half of allteachers hired by the district must be union members laid offfrom school closings.